Book Reviews

“Business economists Calomiris and Haber explain how imperfectly politics and commercial banks intersect, and the consequences for the rest of us. . . . This learned inquiry deserves ample attention from scholars, regulators, and bankers themselves.”–Publishers Weekly

“We get the banking system we deserve” would be a one-sentence summary of the 500 or so pages of Fragile by Design. A slightly longer precis might include the idea that every nation makes its own choices about the type of financial institutions it wants, about the nature of competition between them, and about the balance struck between innovation and risk, on the one hand, and safety and stability on the other. The authors describe the process of making these choices as “the game of Bank Bargains”.–TimesHigherEducation

The Political Origins of Banking Crises and Scarce Credit